Finance

A Vermont lender charges 2 points on a $280,000 mortgage. How much will the borrower pay in points at closing?

A$2,800
B$5,600✓ Correct
C$8,400
D$14,000

Explanation

Points = Loan amount × Points percentage = $280,000 × 2% = $5,600. Using the values given ($280,000), apply the appropriate formula.. The correct answer is $5,600.. This is a common calculation on the Vermont real estate exam.

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